Ethics&Trust_Gil WolinNov06 19/06/2012 12:15 Page 2
ETHICS & AIRCRAFT SALES the highly specialized nature of a turbinepowered aircraft, owners/operators can become easy prey for an unscrupulous broker. It’s imperative that entities considering the acquisition or sale of an aircraft retain a reputable and experienced agent to assist them in avoiding the pitfalls associated with a less ethical agent.
ENSURING YOUR TRANSACTION IS HANDLED ETHICALLY As we’ve already stated, aviation is no different than every other industry and there are some who are less than ethical in their business dealings. So just how do you ensure that you do not become part of such a transaction? • Demand transparency in the transaction: “Determine the transparency and the ready availability of information,” advises Kirby. “Generally speaking, a prospective aircraft buyer or seller should know who is buying or selling the airplane, the price of the transaction, and all commissions being paid to facilitate the transaction. The engagement of an ethical broker/dealer to exclusively represent one party in a transaction provides a level of clarity and value not necessarily found in all deals.
“Full disclosure should be a given in an aircraft transaction, and in the dealings leading up to that transaction. Granted, there are times when a confidentiality agreement is understandable and warranted, but accurate and full information about an aircraft should be required.” • Trust your “gut” instinct: Do your homework and follow your gut, says BALI’s Smith. “Watch out for false advertisements, ‘bait and switch’ tactics and any advertisement that does not include the serial number or other identifying feature of a specific aircraft. A reputable and ethical broker can be a big help in weeding through muddy listings.” • Determine a broker’s reputation and check references: Banyan Air’s O’Keeffe says the only real tool an aircraft broker has to convey his level of trustworthiness is his reputation. “We encourage our clients to review our list of references and to take the time to speak to our clients.” • Ask questions (and don’t be afraid to ask your broker specifically about ethics): “Ethics play a significant role in every aircraft transaction,” O’Keeffe says. “The purchase or
sale of an aircraft is a complicated transaction conducted on an even more complex piece of machinery. In many cases, the actual purchasing or selling entities lack a complete understanding of the mechanical condition of the aircraft and must rely on sound counsel from professional, ethical representatives to ensure a smooth transaction where the needs of both parties are met.”
THE GOLDEN RULE Just as it has been taught to children and adults alike for hundreds of years, ethics can best be summed up by one Golden Rule: Do unto others as you would have them do unto you. Lori Johnson has nearly 20 years of experience in Business Aviation and is currently the Marketing Communications and Programs Manager with Duncan Aviation, the largest family-owned MRO provider in the world. She also works closely with the National Aircraft Resale Association, an organization of turbine aircraft brokers, dealers and support service providers.
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WORLD AIRCRAFT SALES MAGAZINE – July 2012
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